Activision Blizzard (NASDAQ:ATVI) missed estimates for first-quarter adjusted sales on Monday, hurt by low demand for its latest title “Call of Duty: Vanguard”.
Activision’s performance has taken a hit from lower premium sales for “Call of Duty: Vanguard” and weaker engagement in “Call of Duty: Warzone”, with a return to pre-pandemic habits pressing gamers to spend less time on their consoles.
The company, which is being taken over by Microsoft (NASDAQ:MSFT), has also been facing backlash over its response to allegations of internal sexual harassment and discrimination against female employees.
The Santa Monica, California-based company’s quarterly adjusted sales stood at $1.48 billion, compared with analysts’ estimates of $1.80 billion.
Net income for the quarter ended March 31 fell to $395 million, or 50 cents per share, from $619 million, or 79 cents per share, a year earlier.
Excluding items, Activision earned 64 cents per share.
Activision Blizzard continued to engage and connect its network of hundreds of million people worldwide in the first quarter. Financial performance declined year-over-year, primarily reflecting lower results for Call of Duty and product cycle timing at Blizzard, offsetting robust growth at King.
The company incurred an increase in legal and other professional fees, primarily driven by costs associated with its proposed transaction with Microsoft.
“Activision Blizzard,” Monday’s news release concludes “is committed to ensuring an inclusive and safe working environment for its employees, and in the first quarter continued to implement previously announced initiatives to strengthen its practices and policies.”
ATVI shares hesitated 74 cents to $77.87.
